Technically, the 2-hour chart indicators turned sharply lower into the bearish territory.
Ether Price Analysis
Yesterday, we discussed a downward correction in ETH/USD toward the $475.00 and $473.00 support levels. However, the pair failed to hold these supports, resulting in a sharp bearish move below a key support at $450.00.
Similarly, there was an increase in bearish pressure on ETH/BTC. The pair declined and broke a crucial support at 0.0700BTC. It is currently trading near 0.0680BTC and the next support sits at 0.0650BTC.
Starting with the 2-hour chart of ETH/USD, the pair topped near the $495.00 resistance area (as discussed in the monthly outlook). It started a major downward move and declined below a key bullish trendline with support at $480.00.
The pair opened the doors for more losses and the price fell sharply below the $475.00 and $473.00 support levels. The most important bearish break was below the $450.00 support. All these are negative signs, suggesting that Ether has moved into a short-term bearish trend.
A low was formed at $428.63 and the price is currently correcting higher. An initial resistance is the 23.6 percent Fibonacci retracement level of the decline from the $495.49 high to $428.63 low at $443.00. Above this, the next major resistance awaits at $450.00 (the previous support).
Moving up to the 6-hour chart of ETH/USD, there are six back-to-back bearish candles, implying an increase in selling pressure. The pair also cleared two important bullish trendlines near $475.00 and $460.00.
The next major support is at $420.00, below which, there is a risk that Ether’s price could retest the $405.00 swing low. Resistances are sitting at $443.00, $450.00, and $460.00.